Progressive Corp (PGR) Stock: How Does it Score on Valuation Metrics?

InvestorsObserver gives Progressive Corp (PGR) a strong valuation score of 95 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. PGR currently holds a better value than 95% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

PGR gets a 95 Valuation Rank today. Find out what this means to you and get the rest of the rankings on PGR!

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Metrics Analysis

PGR has a trailing twelve month Price to Earnings (PE) ratio of 31.18 which places it above the histroical average of roughly 15. PGR is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. PGR's trailing-12-month earnings per share (EPS) of 4.63 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far. PGR currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.94. The market is currently fairly valuing PGR in relation to its projected growth due to the PEG ratio being around the fair market value of 1. PGR's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

PGR's valuation metrics are adequate at its current price due to a fairly valued PEG ratio despite strong growth. PGR's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on Progressive Corp (PGR) stock.